Embracer CEO to Step Down Amid Acquisitions and Layoffs

Lars Wingefors, founder of Swedish gaming giant Embracer, is stepping down as CEO, marking the end of an era for the company he built into a global powerhouse. Phil Rogers, the current deputy CEO, will take over the role starting August 2025, ushering in a new chapter for the organization.

Embracer, the parent company behind major IPs such as The Lord of the Rings, Dead Island, Metro, and Tomb Raider, has undergone significant transformation in recent years. Following high-profile acquisitions including the purchase of Middle-earth Enterprises and Borderlands developer Gearbox in 2022 and 2021 respectively, the company faced turbulence when a planned $2 billion investment from Savvy Games Group collapsed. In the aftermath, Embracer made sweeping changes: shuttering Volition Games, the studio behind Saints Row; selling Gearbox; parting ways with Saber Interactive, developer of Space Marine 2; and implementing widespread layoffs across its network.

Wingefors described the criticism surrounding these challenges as "painful," acknowledging the difficulties the company faced during this period.

In April 2024, Embracer announced a major strategic shift—restructuring into three distinct entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends. The move was designed to empower each division with independent leadership and strategic focus. However, the reorganization came at a cost: 1,387 employees were let go, and 29 unreleased projects were canceled. More recently, the company revealed plans to spin off Coffee Stain Group and rebranded its Lord of the Rings division as Fellowship Entertainment.

Wingefors will remain deeply involved in Embracer’s future, transitioning into the role of executive chair of the board. Current board chair Kicki Wallje-Lund will assume the position of deputy chair. Additionally, Wingefors has been appointed director of the upcoming Coffee Stain Group, maintaining a key leadership presence across the evolving corporate structure.

"With the start of this new phase, I am thankful for the years and lessons learned as CEO of Embracer," Wingefors said in a statement. "While the road has not always been straight, I am incredibly proud of the achievements made possible by our talented teams, which have created some incredible experiences for gamers.

"This new phase allows me to focus on strategic initiatives, [mergers and acquisitions], and capital allocation, ensuring Embracer's continued growth and success. I am more convinced than ever that the best is still ahead of us. Having worked very closely with Phil over the past years, I have high confidence in his abilities. I look forward to a continued close collaboration to further strengthen the business and drive value in the coming years."

Looking ahead, Embracer maintains control over more than 450 franchises and operates through a vast network of subsidiaries, including THQ Nordic, Plaion, Coffee Stain, Amplifier Game Invest, DECA Games, Dark Horse, Freemode, and Crystal Dynamics – Eidos. The company currently supports 73 internal game development studios and employs over 7,000 people worldwide.